Fortuna Silver Mines and Roxgold have announced the completion of the previously announced business combination create a global premier growth-oriented intermediate gold and silver producer.
Jorge A. Ganoza, President and CEO of Fortuna, comments:
“The successfully completed business combination creates a low-cost intermediate gold and silver producer with four operating mines and a permitted development project.
“The company will benefit from a robust exploration pipeline and expanded presence in the Americas and West Africa, two of the fastest growing precious metals producing regions in the world.”
“We look forward to a successful integration and to continue building the business in West Africa on the solid foundations cemented by Roxgold.”
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John Dorward, President and CEO of Roxgold, comments:
“I would like to thank the Roxgold shareholders for their support. I am very proud of the Roxgold team and what we accomplished together and believe Fortuna is now positioned with one of the best organic growth pipelines among any of the intermediate precious metal producers, supported by peer-leading free cash flow generation, increased scale and diversification, and a lower cost of capital.”
The Transaction was completed by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia) pursuant to the arrangement agreement between Fortuna and Roxgold dated effective April 26, 2021.
Under the terms of the Transaction, Fortuna acquired all the issued and outstanding common shares of Roxgold in exchange for 0.283 of a common-shares of Fortuna and C$0.001 in cash for each Roxgold Share held.
Upon completion of the Transaction, Roxgold is a wholly-owned subsidiary of Fortuna.
The Transaction was approved by Roxgold shareholders at a special shareholder meeting held on June 28, 2021 and the issuance of Fortuna Shares under the terms of the Transaction was approved by Fortuna shareholders at Fortuna’s annual and special meeting held on June 28, 2021.
Following the shareholder meetings, the British Columbia Supreme Court granted a final order on June 30, 2021 approving the Arrangement.